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What is Return on Investment (ROI)?
A performance measure used to evaluate the efficiency of an investment, calculated as (Net Profit / Cost of Investment) × 100.
Examples & Use Cases
Real-world applications and practical implementations
1
$1000 profit from $500 investment = 200% ROI
Related Terms
Explore related concepts and expand your knowledge
Cost Per Acquisition (CPA)
The total cost to acquire one paying customer, including marketing and affiliate commission costs.
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Lifetime Value (LTV)
The predicted total revenue from a customer over their entire relationship with the business.
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Conversion Rate
The percentage of visitors who take a desired action, such as making a purchase or signing up.
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